COMMODITY IMPORT LOAN.

LOAN WILL BE MADE AVAILABLE TO ZAIRIAN PUBLIC AND PRIVATE SECTOR IMPORTERS FOR THE FULL RANGE OF ELIGIBLE AID COMMODITIES. ALTHOUGH A SPECIFIC LIST OF COMMODITIES HAS NOT BEEN NEGOTIATED WITH THE GOZ, IT IS ANTICIPATED THAT 60% OF LOAN WILL SUPPORT PUBLIC SECTOR PROCUREMENT, WITH 80% OF THIS AMOUNT TO BE COMMITTED TO SPARE PARTS AND EQUIPMENT FOR STATE RUN TRANSPORTATION AND MINING ACTIVITIES, AND 20% EARMARKED FOR FERTILIZER IMPORTS. THE REMAINING 40% OF LOAN FUNDS WILL SUPPORT PRIVATE SECTOR IMPORTS OF EQUIPMENT, SPARE PARTS, AND RAW MATERIALS. PROBABLE IMPORTS ARE: AGRICULTURAL EQUIPMENT, INDUSTRIAL TRACTORS, UTILITY VEHICLES, EARTH-MOVING EQUIPMENT, MARINE DIESEL ENGINES, GREY CLOTH, AND CHEMICALS. LOAN MAY ALSO FINANCE SERVICES OF US FIRMS TO SERVE AS PROCUREMENT CONSULTANTS AND ASSIST THE GOZ IN PREPARATION AND ISSUANCE OF IFB"S ANALYSIS OF AWARDS, AND EXECUTION OF SUPPLY CONTRACTS. COUNTERPART FUNDS GENERATED BY LOAN ACTIVITIES WILL BE UTILIZED BY THE GOZ FOR DEVELOPMENT ACTIVITIES TO BE AGREED UPON BY AID. POSSIBILITY OF USING US EXCESS PROPERTY WILL BE EXAMINED.